currently employed to more empowered multi stakeholder processes. Such a broadening of how 

participation is viewed is the challenge for natural resources management in Indonesia. 

Several critical concepts which NRMP found to underpin the process of achieving sustainable 

development pertained to linkages between regional economic development and the 

environment, including the concepts of industrialization and capital appropriation, and linkages 

between sustainable resources management and development.  These concepts are raised in 

the context of a society that needs to make decisions on resource allocation.  Mechanisms to do 

so are discussed, including concepts of participation, multi stakeholder processes, community 

or local control of resources management, and the use of policy in a behavior change 

framework.   

Specific issues pertaining to sustainable development are: 

Sustainable development requires the application of technology to increase the value of 

each unit of resources, while growth requires the application of technology to increase 

the utilization rate of the resource itself.  Industrialization is therefore an important 

contributor to achieving sustainable development. 

Sustainable development needs sustainable resources management.  Sustainable 

resources management requires resources be linked to technology in a manner that 

increases the per unit value of resources and not simply the per unit utilization rate or 

extraction of resources. 

Resource allocation decisions are increasingly determined by market processes.  

However, determination of how much consumption to reduce now for the sake of future 

generations needs greater involvement than by a narrow set of market participants.  

Devolution and decentralization of decision making responsibilities and multi stakeholder 

participation are critical developments to achieve better policy outcomes, 

Community or local control and management of resources are poorly conceived by many 

proponents of such approaches.  The science on these issues identifies a narrow set of 

circumstances where local control will apply, while increased access to technology and 

markets will improve the acceptability of these approaches. 

1.2.1  The Role of Policy  

Policy is a fundamental part of everyday life.  It influences the way people organize themselves 

and behave by guiding and directing socially acceptable behaviors.  Policy also influences 

decisions people make that affect their use of and impact on natural resources.  In effect, policy 

determines who benefits from resources and who does not.  Policies are created and 

implemented to influence human behaviors.  A number of alternative means to change behavior 

exist (e.g., economic incentives and disincentives, social pressures, education, information).  

Successful policies use the whole spectrum of behavioral change techniques.    

The Government of Indonesia s policy objective of high economic growth and equity within a 

sustainable development pathway requires both efficient and equitable behavioral outcomes.  In 

Indonesia, emerging markets and economics play a large role in current policy development 

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